CHAPTER 1

INTRODUCTION

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INTRODUCTION ON THE TOPIC

1.1 Meaning of Cosmetics

Cosmetics, also known as make-up are care substances used to enhance they are

general appearance or odor of the human body. They are generally mixtures of

chemical compounds, some being derived from natural sources (such as coconut oil)

and some being synthetics.

In the U.S., THE Food AND DRUG Administration (FDA), which regulates, defines

cosmetics as “intended to be applied to the human body for cleansing, beautifying,

promoting attractiveness, or altering the appearance without affecting the body’s

structure or functions.” This broad definition includes any material intended for use as

a component of a cosmetic product. The FDA specifically excludes soap from this

category

1.2 HISTORY

Ancient Sumerian men and women were possibly the first to invent and wear lipstick,

about 5,000 years ago. They crushed gemstones and used them to decorate their faces,

mainly on the lips and around the eyes. Also around 3000 BC to 1500 BC, women in

the ancient Indus Valley Civilization applied red tinted lipstick to their lips for face

decoration. Ancient Egyptians extracted red dye from fucus-algin, 0.01%iodine, and

some bromine mannite, but this dye resulted in serious illness. Lipsticks with

shimmering effects were initially made using a pearlescent substance found in fish

scales.6 thousand year old relics the hollowed out tombs of the Ancient Egyptian

pharaohs are discovered. According to one source, early major developments include

Kohl used by ancient Egypt as a protective of the eye kohl

Castor oil used by ancient Egypt as a protective balm.

Skin creams made of beeswax, olive oil, and rosewater, described by Romans.

Vaseline and lanolin in the nineteenth century.

The Ancient Greeks also used cosmetics as the Ancient Romans did. Cosmetics are

mentioned in the Old Testament, such as in 2 Kings 9:30, where Jezebel painted her

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eyelids—approximately 840 BC—and in the book of Esther, where beauty treatments

are described.

One of the most popular traditional Chinese medicines is the fungus Tremella

fuciformis, used as a beauty product by women in China and Japan. The fungus

reportedly increases moisture retention in the skin and prevents senile degradation of

micro-blood vessels in the skin, reducing wrinkles and smoothing fine lines. Other

anti-ageing effects come from increasing the presence of superoxide dismutase in the

brain and liver; it is an enzyme that acts as a potent antioxidant throughout the body,

particularly in the skin.

Cosmetic use was frowned upon at many points in Western history. For example, in

the 19th century, Queen Victoria publicly declared makeup improper, vulgar, and

acceptable only for use by actors.

During the sixteenth century, the personal attributes of the women who used make-up

created a demand for the product among the upper class. The world's largest

cosmetics company is L’Oreal, which was founded by Eugene Schueller in 1909 as the

French Harmless Hair Coloring Company. The market was developed in the USA

during the 1910s by Elizabeth Arden, Helena Rubinstein, and Max Factor. These

firms were joined by Revlon just before World War II and Estée Lauder just after.

During the 18th Century, there were a high number of incidences of lead-poisoning

because of the fashion for red and white lead makeup and powder. This led to

swelling and inflammation of the eyes, attacked tooth enamel and caused skin to

blacken. Heavy use was known to lead to death.

Beauty products are now widely available from dedicated internet-only retailers, who

have more recently been joined online by established outlets, including the major

department stores and traditional bricks and mortar beauty retailers.

Although modern make-up has been traditionally used mainly by women, an

increasing number of men are using cosmetics usually associated to women to

enhance or cover their own facial features. Concealer is commonly used by

men. Cosmetics brands release products especially tailored for men, and men are

increasingly using them.

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1.3. Introduction of Herbal and Non-Herbal Cosmetics:

HERBAL COSMETICS:

Herbs have been used in maintaining and enhancing beauty since time immemorial.

Plant and plant extracts in cosmetics are used for purposes such as moisturizing,

coloring, whitening, sunscreen, antioxidant, immunostimmulant, cleansing, and

preservatives etc.

(Blum el at., 2007). Products that are formulated using various permissible cosmetic

ingredients to form the base which one or more herbal ingredients are used to provide

defined cosmetics benefits only are called as herbal cosmetics.

1.4 HERBAL AND NON-HERBAL PRODUCTS

1.3.1 HERBAL PRODUCT

1. The Himalaya product:

“Himalaya products” has become one of the most trusted names in the Indian herbal

cosmetic industry. Since the year 1930, the company has been taking utmost care of

our beauty with its vast line of products that are 100% natural and safe. Years of

research, rare Himalaya herbs, best ayurvedic compositions, and superior

pharmaceutical technology are some of the specialties of this brand.

Product range: Face care (cleansers or washes, scrubs, masks, toners, moisturizers, fairness, eye

care, lip care and special treatment).

Body care (lotion, creams and soaps)

Hand care

Foot care

Hair care (oils, shampoos, conditioners and creams)

2. Lotus herbals:

a. Hair loss solution

b. Facial products

c. Anti-ageing creams

d. Dark circle treatments

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e. Best Acne treatment

f. Tips for glowing skin

g. Free Makeup samples

h. Natural teeth whitening

i. Cerave skin products

j. Best vitamins for skin

Being one of the most renowned herbal cosmetic brands of India, lotus herbals offers

more than 250 variations of beauty and cosmetics items enriched with all the

goodness of some not-so-easily –available medicinal as well as therapeutic herbs. It is

an ISO 9001 company with a holistic healthcare approach, which helps us the most of

our beauty regime by providing long-time results in the shortest possible time.

Product range:

Skin care (face washes, cleaners, toners moistures, protectors, nourishes,

correctors, enhancers, exfoliates, lip care and whitening cream.

Body care (lotions and ayurvedic cleaning bars)

Hair care (oils, shampoos and tonics)

Safe sun care (before sun, after sun, non-greasy, anti-ageing with tint, for men and

for kids)

Make up (face, eyes, lips, nails, ecstasy and others).

3. Khadi natural

When you opt for Khadi natural, you don’t need to worry about the quality or

purity of your herbal cosmetic products. Rather, the enormous range of products

will make you spoiled for choices. It is one of the leading manufacturers of herbal

items in India and has long been delivering customized products to customers of

all skin and hairs types.

Product range:

Skin care (face washes, toners, moisturizers, scrubs, packs, masks , spray, creams,

body butter, hydro gel and lip balms)

Hair care ( regular oils, no mineral oil and paraffin-free oils, shampoos,

conditioners, mehnandi and henna products that are 100% NATURAL COLORS)

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BODY care (bath oils, bath salts, body wash and aromatic bubble bath).

Handmade soaps( butter soaps, glycerin soaps hand Loofahs soaps)

Aromatherapy ( essential oils and massage oils)

4. Vaadi herbals:

Vaadi herbals bring a perfect combination of herbal science and advance

technology to us through its wide range of beauty and personal care products.

Usage of the finest quality natural herb extracts and highly reasonable prices are

the specialties of this brand.

Product range:

Face care(washes, scrubs, creams, lotion, gels, packs, facial creams, facial

soaps/bars and facial kits)

Bath and body care (oils, soaps, creams, lotion , scrubs and gels)

Hair care(oils and shampoos)

Lip care(lip balms, etc)

Foot care(creams, scrubs and soaps)

5. Just herbs

Just herbs is another level and ayurvedic cosmetics brand in India, which is much

appreciated for disclosing the full list of ingredients for its products. Each of the

items is uniquely formulated with certified natural components for ensuring

maximum efficiency, ultimate safety and luxurious experience.

Product range:

Face and body care (cleaners, exfoliates, moisturizers, natural sun protective

products and glow boosters)

Hair care (dandruff control, hair fall, products for dry to normal scalp and

products for normal to oily scalp.

6. Biotique:

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.When it comes to the best Indian herbal cosmetics brands, bioteque always comes in

the list of top 10. The company has earned worldwide reputation for blending time-

tested natural therapies with the science of bio-technology.

Product range:

Skin care(cleansers, exfoliates, toners, moisturizers, scrubs, masks, vitalizes,

products for sun protection, eye care and lip care)

Hair care (oils, shampoos, conditioners , serums and product for styling)

Body care (cleaners, nourishes, products for body massage, after bath, hand care

and foot care)

Make up (face, eyes ,lips, nails and shimmers)

7. Forest essentials

Only herbs extracts along with pure essential oils can help us to retain the youth of

our skin. And this is the concept behind the famous beauty and skin care line

called forest Essentials. Each and every product that we use from this brand

contains spring water and natural grown herbs from deep forest. Moreover, all of

them are made by labors in several Himalaya villages.

Product range:

Facial care(cleansers, exfoliates, hydrating gels, toners, moisturizers, night

creams, anti-aging, skin lightening, masques, eye care and lip care)

Body care (base oils, bath oils, shower oils, massage oils, cream, lotions,

polishers, soaps, mists, shower wash, butter soaps and handmade clear sugar

soaps)

Hair care(head massage oils, cleansers and conditioners)

Hair care (head massage oils, cleansers and conditioners)

Wellness (diffusers burner’s oils, etc.)

8. Ayur herbs:

True to its tagline i.e., ‘close to nature, close to you’, Ayur herbal offers a vast range

of natural beauty and cosmetics products to Indian as well as international customers.

Each and every item delivered by this company is the result of thorough research.

Authenticity and price are the biggest pros of this brand.

Product range:

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Face care(gels, wash, scrubs, masks, packs, cleansing milk, astringent, toners,

moisturizers, lotion, creams and lip balm)

Sun care (sunscreen lotion and after sun burn gel)

Body care (waxes, fairness bleach, rosewater, soaps and breast firming products)

Hair care(hair wash, oils, shampoos, conditioners, kali mehnandi, henna powder

and styling gels)

9. VLCC

Not only specific beauty treatments, but the VLCC personal care has also its own

line of herbal cosmetics and beauty products that suit all sorts of skin and hair.

From healing, protecting to taking care, you can expect everything from the

exclusively formulated VLCC products.

Product care:

Skin care(cleaners, washes, scrubs, toners, astringent, moisturizers, packs, skin

whitening products, anti-pollution products, soaps, bleaches, eye care and lip care)

Sun defense range(sun screens and after sun care)

Body care (lotion , body therapy and pedilgo)

Hair care (oils, shampoos, conditioners, masks and henna)

Specialties(facial kits, products for shaping and products for glooming)

10. JOVES herbal:

Jove’s herbal has also been providing high quality herbal cosmetics to Indian as

well as international customers since last few years. The brand has more or less

85 excellent natural products in its portfolio now. With so many choices of items,

you can easily pick the best one to meet your requirements.

Product range:

Skin care(cleansers, scrubs , toners/astringent, nourishes and packs/masks)

Sun care(sun block, anti-tan pack, protective creams, gels and lotions)

Eye care(cream, gel and kajal )

Lip care(lip care and lip balm)

Hair care(oils, shampoos, conditioners , tonics, packs , mehnandi, revitalizes, hairs

and scalp cleansers)

Specialties-pearl whitening products and 24 carat gold series.

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11. Prakriti herbals

They have an entire range of products for skin and hair care, right from shampoos,

scrubs and packs/masks.

1.4.2) Non-herbal:

a) Lakme:

Lakme is an Indian cosmetics brand which is owned by Hindustan Unilever and

run by CEO Pushkraj Shenai. Having Kareena Kapoor Khan as the ambassador,

it ranked at number 1 among the cosmetics brand in India. Lakme started as a

100% subsidiary of TaTA oils mills (TOMCO). It was named after the French

opera Lakme, which itself is the French form of lakshmi (the goodness of

wealth) who is renowned for her beauty. It was started in 1952 famously,

because the Prime Minister Jawaharlal Nehru was concerned that Indian women

were spending precious foreign exchange on beauty products and personally

requested to JRD Tata manufacture them in India. Simone Tata joined the

company as director and went on to become the chairperson.

b) L’Oreal

L’Oreal is a French cosmetics company headquartered in CLINCHY, HAUS-

DE-SENIE with a registered office in Paris. It is the world’s largest cosmetics

company and has developed activated in the field of cosmetics, concentrating on

hair color, skin color, sun protection, make-up, perfumes and hair care, the

company is active in the dermatology, toxicology, tissue engineering and

biopharmaceutical research fields and is the top nano technology patent-holder

in the united states. The company is a component of the EURO STOXX 50

stock market index.

c) Revlon:

Among all international players in the segment in India, the first one to launch

was none other than Revlon in 1995. It happened due to the collaboration

between Umesh K MODI along with Revlon PVT LTD in 1994. Pricing is done

for the mid-level of consumers as it neither too high nor too low priced. The

company owns approximately 20-25% of the domestic color cosmetic market

share.

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.

d) Maybelline:

The Maybelline company was created by a 19 years old entrepreneur named Tom

Lyle Williams noticed his older sister Mabel applying a mixtures of Vaseline and

coal dust to her eyelashes to give them a darker, fuller look. He adapted it with a

chemistry set and produced a product sold locally called lash-in-brow line.

Williams renamed his eyes beautifier Maybelline, in honor of his Mabel, who gave

him the idea. In 1917 the company produced Maybelline cake MASCARA, “the

first modern eye cosmetic for everyday use” and ultra lash in the 1960’s which the

first was mass –market automatic.

e) Ponds

Pond’s cream was invented in the United States as patent medicine by pharmacist

THERON T. POND (1800-1852) of UTICA, New York, in 1846. Mr. Pond

extracted a healing tea from witch hazel which he discovered could heal small cuts

and animal aliments. The product was named “golden treasure”. After thereon

died, it would be known as “POND’s Extract Company”. The company then

moved to Connecticut establishing its manufacturing center there. Later it moved

its sales office in New York City. In 1886, ponds began to advertise nationally.

They advertised under the name of Pond’s healing until 1910. By the twentieth

century, the company’s main emphasis was selling cosmetics products. The pond’s

“vanishing cream” and the “pond” cold cream were created, marketing the entrance

of pond’s products into the facial care industry. Today ponds are sold around the

world. Its largest markets are in Spain and in Asia, including India, Japan and

Thailand.

1.4 Ingredients of cosmetics

A variety of organic compounds and inorganic compounds comprise typical

cosmetics. Typical organic compounds are modified natural oils and fats as well

as a variety of petro chemically derived agents. Inorganic compounds are

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processed minerals such as iron oxides, talc, and zinc oxide. The oxides of zinc

and iron are classified as pigments, i.e. colorants that have no solubility in

solvents.

1.5 Natural

Handmade and certified organic products are becoming more main stream, due to

the fact that certain chemicals in some skincare products may be harmful if

absorbed through the skin. Products claimed to be organic should, in the U.S., be

certified "USDA Organic".

1.6 Mineral

The term "mineral makeup" applies to a category of face makeup, including

foundation, eye shadow, blush, and bronzer, made with loose, dry mineral

powders. These powders are often mixed with oil-water emulsions. Lipsticks,

liquid foundations, and other liquid cosmetics, as well as compressed makeup’s

such as eye shadow and blush in compacts, are often called mineral makeup if

they have the same primary ingredients as dry mineral makeup’s. However, liquid

makeups must contain preservatives and compressed makeup must contain

binders, which dry mineral makeup does not. Mineral makeup usually does not

contain synthetic fragrances, preservatives, parables, mineral oil, and chemical

dyes. For this reason, dermatologists may consider mineral makeup to be gentler

to the skin than makeup that contains those ingredients. Some minerals are

nacreous or pearlescent, giving the skin a shining or sparking appearance. One

example is bismuth ox chloride.

1.7 Benefits of cosmetics

Although the chemical constituent of cosmetics sometimes causes concerns, some

chemicals are widely seen as beneficial. Titanium dioxide, found in sunscreens,

and zinc oxide have anti-inflammatory properties, mineral makeup with those

ingredients can have a calming effect on the skin, which is particularly important

for those who suffer from inflammatory problems such as rosaceous. Zinc oxide is

anti-microbial, so mineral makeup can be beneficial for people with acne. Mineral

makeup is noncomedogenic (as long as it does not contain talc) and offers a mild

amount of sun protection (because of the titanium dioxide and zinc

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oxide).Because they do not contain liquid ingredients, mineral makeup has long

shelf-lives.

1.8) Cosmetics Industry

The manufacture of cosmetics is dominated by a small number of multinational

corporations that originated in the early 20th century, but the distribution and sale of

cosmetics is spread among a wide range of businesses. The world’s largest cosmetic

companies are L’Oreal, Procter & Gamble, Unilever, Shiseido and Este Lauder. In

2005, the market volume of the cosmetics industry in the US, Europe, and Japan was

about EUR 70B/y. In the United States, the cosmetic industry's size was US$42.8

billion in 2008. In Germany, the cosmetic industry generated €12.6 billion of retail

sales in 2008, which makes the German cosmetic industry the third largest in the

world, after Japan and the United States. German exports of cosmetics reached €5.8

billion in 2008, whereas imports of cosmetics totaled €3 billion.

The worldwide cosmetics and perfume industry currently generates an estimated

annual turnover of US$170 billion (according to Eurostaf – May 2007). Europe is the

leading market, representing approximately €63 billion, while sales in France

reached €6.5 billion in 2006, according to FIPAR (Federation des Industries de la

Perfumeries – the French federation for the perfume industry). France is another

country in which the cosmetic industry plays an important role, both nationally and

internationally. According to data from 2008, the cosmetic industry has grown

constantly in France for 40 consecutive years. In 2006, this industrial sector reached

a record level of €6.5 billion. Famous cosmetic brands produced in France include

Vichy, Yves Saint Laurent, Yves Rocher and many others. The Italian cosmetic

industry is also an important player in the European cosmetic market. Although not

as large as in other European countries, the cosmetic industry in Italy was estimated

to reach €9 billion in 2007.The Italian cosmetic industry is dominated by hair and

body products and not makeup as in many other European countries. In Italy, hair

and body products make up approximately 30% of the cosmetic market. Makeup and

facial care, however, are the most common cosmetic products exported to the United

States.

Due to the popularity of cosmetics, especially fragrances and perfumes, many

designers who are not necessarily involved in the cosmetic industry came up with

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perfumes carrying their names. Moreover, some actors and singers (such as Celine

Dion) have their own perfume line. Designer perfumes are, like any other designer

products, the most expensive in the industry as the consumer pays for the product

and the brand. Famous Italian fragrances are produced by Giorgio Armani, Dolce

and Gabbana, and others.

Procter & Gamble, which sells Cover Girl and Dolce & Gabbana makeup, funded a

study concluding that makeup makes women seem more competent. Due to the

source of funding, the quality of this Boston University study is questioned.

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Customer Satisfaction

Kotler (2000) defined satisfaction as: “a person’s feeling of pleasure or

disappointment resulting from comparing a product’s perceived performance (or

outcome) in relation to his or her expectation”. According to Hans mark and

Albinsson (2004), “satisfaction is an overall customer attitude towards a service

provider, or an emotional reaction to the difference between what customers

anticipate and what they receive, regarding the fulfillment of some need, goal or

desire.

Hoyer and Maclnnis (2001) said that the satisfaction can be associated with the

feelings of acceptance, happiness, relief, excitement and delight. There are many

factors affect customer satisfaction. According to Hokanson (1995), these factors

include friendly employees, knowledgeable employees, helpful employees, accuracy

of billing, billing timeliness, competitive pricing, service quality, good value, billing

clarity and quick services.

Factor of source satisfaction level:

Src: www.wikipedia.com

In order to achieve customer satisfaction, organizations must be able to satisfy their

customers’ needs and wants. Customers’ needs state the felt deprivation of a customer

(kotler2000). Whereas a customer wants according to Kotler (2000) refer to “the form

taken by human needs as they are shaped by culture and individually personality”.

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Levels of customer satisfaction:

When discussing categories of customer satisfaction levels, Williams and Buswell

(2003) refers to Oliver’s theory that divides potential customer satisfaction levels into

three categories:

First, negative disconfirmation happens when the level of services turns out to be

worse than expected by the customer.

Second, positive disconfirmation, is the case where the service is better than expected

by the customers.

Third, simple disconfirmation, happens when the level of services matches the level

of service expectation.

Measuring Customer Satisfaction:

From the beginning of the customer service revolution almost 20 years ago, a body of

business research has focused on customer satisfaction and customer-focused

organization. All customer satisfaction studies share the same underlying principle: to

access the performance of an organization” products or services on the basis of how

they are perceived by the customer. Whether those perceptions are misplaced, lag,

behind current performance or are a very accurate interpretation, customers

perception matter. Indeed, understanding these perceptions provides a critical

understanding of future customer behavior.

In the economy knowledge is a resource as well as increasingly, a product: with

tangible goods becoming globally standardized and best practice travelling fast,

companies gain competitive advantages through constant motivation, better targeting

of customers and additional services. Those strategies cannot be applied to the arm’s

length type of customer relation. The higher the innovative and service component,

the more the more customers becomes part of the performance equation. Customer

relations then constitute an important asset that should be monitored just like physical

assets. More emerging approaches to the measurement of intellectual capital agree on

the importance of customer capital, as expressed in sales, satisfaction and reputation.

Accordingly, those approaches distinguish between references customers

(satisfaction, sales). Independently of approaches to the measurement of intellectual

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capital, marketing literature has suggested a wide array of industry-specific models to

monitor customer satisfaction.

Measuring customer satisfaction is beyond the constitution happy customers.

Measuring customer satisfaction is about profit and competitive advantage. To

achieve long term success in the market, firm should monitor the customer

satisfaction signals regarding product, services and relationship. Measuring customer

satisfactions provide a comprehensive insight to the customer pre and post purchase

behavior. Without this approach understanding, improving and developing better

customer services could not be possible.

Thus, business consultants, corporations and others have worked to identify the

characteristics of organization that consistently please their customers, to develop

tools for monitoring customer satisfaction, and to build continuous, quality

improvement systems that respond to customer feedback.

Measures allow business to: 1) know how well the business process is working 2)

know where to make changes to create improvement, if changes are needed; 3)

determine if the changes led to improvement. Knowledge of customer’s perception

and attitudes about an organization’s business will greatly enhance its opportunity to

make better business decisions. These organizations will know their customer

requirements or expectation and will be able to determine if they are meeting those

requirements.

Before measuring something it must be known what will measure and why. The

measurement program must answer who, what, when, where, how and why questions

that are essential for success.

Who will measure customer satisfaction? The answer is everyone.

What must be measured? Everything and anything that affects customer.

When must you measure? All the time.

Where do you measure? Throughout the entire company and every process that has

effect on customer satisfaction and quality.

How you measure? To learn how to improve quality and increase customer

satisfaction.

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Customer satisfaction measurement and marketing research activities marketing

research and customer satisfaction measurement is being confused with each other.

There are many differences between customer satisfaction measurement and

marketing research. Table given below shows the difference between marketing

research and customer satisfaction measurement.

( Table no 1) The difference between marketing research and customer

satisfaction

The issue Marketing research Customer satisfaction

measurement

Who to survey A sample-a statistically

representative sampling

A census- all customers

should be given the

opportunity to participate.

Acknowledgement of

participation

Not essential-establishing

goodwill with sample is

irrelevant; it is unlikely

they will ever be sampled

again.

Essential – their

participation in future

surveys is desired, it is also

desirable to establish

goodwill so they will

continue to buy our

product/services.

Repeated No, participants will Essential, we need to track

the growth or

Measurement Become “sensitized” to the

issue, making their

responses less valid.

Decline in individual

satisfaction.

When to survey A single “wave” may be

sufficient

Continuous surveying is

best, it is less likely to

reflect one specific contact

event and more likely to

reflect the cumulative

experience with the

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organization.

The purpose To collect To collect information, to

solve specific customers

problems, and to

communicate to all

customers their opinions

are desired.

“The difference between marketing research and customer satisfaction measurement”

As it shown on the table there are many differences between marketing research and

customer satisfaction measurement. Regarding target of the survey, participants

identifies, acknowledgement of participation, repeated measurements, timing and

purpose we cannot say they are totally same processes.

Importance:

Here are the top six reasons why customer satisfaction is so important:

1. it’s a leading indicator of consumer repurchase intentions and loyalty:

Customer satisfaction is the best indicator of how likely a customer will make a

purchase in the future. Asking customer to rate their satisfaction on a scale of 1-10

is a good way to see if they will become repeat customers or even advocates.

Any customers that give you a rating of 7 and above, can considered satisfied, and

you can safely expect them to come back and make repeat purchases. Customers

who give you a rating of 9 or 10 are your potential customer advocates who can

leverage to become evangelists for your company.

Scores of 6 and below are warning signs that a customer is unhappy and at risk of

leaving. These customers need to be put on a customer watch list and followed up

so you can determine why their satisfaction is low.

That’s why it’s one of the leading metrics businesses use to measure consumer

repurchase and customer loyalty

2. it’s a point of differentiation:

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In a competitive marketplace where businesses compete for customers; customer

satisfaction is seen as a key differentiator. Businesses who succeed in these cut-

throat environments are the ones that make customer satisfaction a key element of

their business strategy

3. It reduces customer churn:

An Accenture global customer satisfaction report (2008) found that price is not the

main reason for customer churn; it is actually due to the overall poor quality of

customer service.

Customer satisfaction is the metric you can use to reduce customer churn. By

measure and tracking customer satisfaction you can put new processes in place to

increase the overall quality of your customer service.

4. It increases customer lifetime value

A study by info quest found that a totally satisfied customer contribute 2.6 times

more revenue than a somewhat satisfied customer. Furthermore, a ‘totally satisfied

customer’ contributes14 times more revenue than a “somewhat dissatisfied

customer’.

Satisfaction plays a significant role in how much revenue a customer generates for

your business.

5. It reduces negative word of mouth:

Mc Kinsey found that an unhappy customer tells between 9-15 people about their

experience. In fact, 13% of unhappy customer tells over 20 people about their

experience.

6. it’s cheaper to retain customer than acquire new ones:

This is probably the most publicized customer satisfaction statistic out there. It costs

six to seven times more to acquire new customers than it does to existing customers.

If that stat does not strike accord with you then there’s not much else I can do to

demonstrate why customer satisfaction is important.

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CHAPTER 2

LITERATURE REVIEW

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Literature review

Consumer satisfaction can also be built by comparing price with perceived costs and

values. If the perceived values of the product are greater than cost, it is observed that

consumers will purchase that product. Loyal customers are willing to pay a premium

even if the price has increased because the perceived risk is very high and they prefer

to pay a higher price to avoid the risk of any change (Yoon & Kim, 2000).

Cadogan & Foster (2000) argued that price is probably the most important

consideration for the average consumer. Consumers with high brand loyalty are

willing to pay a premium price for their favored brand, so their purchase intention is

not easily affected by price. In addition, customers have a strong belief in the price

and value of their favorite brands, so much so that they would compare and evaluate

prices with alternative brands (Keller, 2003).

The satisfaction judgment is related to all the experiences made with certain business

concerning its given products, the sales process, and the after-sales services. Whether

the customer is satisfied after purchase also depends on the offer’s performance in

relation to the customer’s expectation. Customers from their expectation from past

buying experiences, friends’ and associates’ advice, and marketing’ and competitors’

information and promises. (Kotler, 2000)

There is general agreement that: satisfaction is a person’s feeling of pleasure or

disappointment resulting from comparing a product’s perceived performance(or

outcome) in relation to his or her expectation (Kotler, 2003). Based on this review,

customer satisfaction is defined as the result of a cognitive and affective evaluation,

where some comparison standard is compared to the actually perceived performance.

If the perceived performance is less than expected, customers will be dissatisfied. On

the other hand, if the perceived performance exceeds expectations, customers will be

satisfied. Otherwise, if the perceived expectations are met with performance,

customers are in an indifferent or neutral stage.

Factor which determines the extent of expectations are: customers needs, total

customer value and total cost. It is mentioned by researchers who study customer

choice that choosing a product or services is only one of the stages customers go

through. A purchase decision is influenced by the buyer’s characteristics. These

21

include cultural, social, personal and psychological factors. In addition to the buyer’s

characteristics, a purchase decision is influenced by the buyer’s decision process. 1.

New recognition; 2. Information research; 3. Information evaluation; 4. Purchase

decision; and 5. Post-purchase evaluation. (Chaston, 2005)

Customer satisfaction is defined as a customer’s overall evaluation of the performance

of an offering to date. This overall satisfaction has a strong positive effect on

customer loyalty intention across a wide range of product and services categories

(Gusatafsson, 2005).

Duff (2007) investigated the niche market in women’s cosmetics and observed that

cosmetics buyers were becoming more fashion conscious and were demanding

products with more attractive design; furthermore, consumers have a tendency to use

different make up design for different occasion. It is further argued that design or

visual appearance is the important part of the product, which includes line, shape and

details affecting consumer perception towards a brand.

Guthrie, Kim & Jung (2008) examined women's perceptions of brand personality in

relation to women's facial image and cosmetic usage. This study sought to develop a

better understanding of how various factors influence perceptions of cosmetic brands

in the USA. The survey included items measuring facial image, cosmetic usage, brand

personality and brand attitude. The findings showed that an effective brand

personality was important across all three brands, although consumer perceptions

pertaining to the remaining brand personality traits differed. The study found that

consumers' facial image influenced the total quantity of cosmetics used. Results also

indicated that a relationship existed between facial image and brand perceptions.

Kharim (2011) argued that product quality plays a significant role in influencing

consumers to be brand loyal customers. Additionally, the overall findings of the study

showed that, amongst others, UAE consumers preferred brand name, product quality,

price, promotion, store environment and service quality as relevant factors attributable

to brand loyalty. All these factors showed positive relationships with brand loyalty,

except design, which had no relationship. Undeniably, the cosmetics industry is one

area which offers vast potential in the consumer market where there is an increase in

social activities. More reliable and positive findings on this topic would have an

impact on consumers, marketers and policy-makers. Marketers should find it useful to

22

understand how loyalty factors can affect consumer-buying behavior in the

marketplace, which can help in segmenting consumers and markets for their brands

and marketing communication. By examining how cosmetic usage determines brand

perceptions, companies can improve their marketing strategies to enhance customer

satisfaction and increase their customer base. Moreover, by identifying the brand

personalities that attract consumers, companies can pinpoint the characteristics

customers look for in a product, which in turn can be used to enhance brand image.

Herbal cosmetics:

Adolescent and teenagers have a greater concerned on their health (MarCoux, 1999).

The herbal products that are available in Bangladesh meet the desire and demand of a

particular segment of consumers who are health conscious. Research reveals that

beauty consciousness among people is an ongoing process and consumer’s need for

appearance and materialism is increasing (VIGNERON and JOHSON, 1999).

In study of consumer adoption of herbal therapies, Ritho, Klepser and Doucette

(2002) specified four types of influences that affect consumer’s adoption of herbal

therapies and these are: consumer characteristics, social systems, communication

channels and characteristics of herbals. The influence consumer characteristics on

consumer’s adoption of herbal therapies include demographic attributes. Friends were

found to play a dominant role as a communication.

The growing retail segment and a good scope of manufacturing are two factors that

mean future growth for the Indian market. The Indian cosmetics market has seen

major change both in terms of user perception. The increasing market size is the direct

result of the changing socio-economic status of the Indian consumers, especially

women. Higher paying jobs and increasing awareness of the western world and

beauty trends there have served to change the taste and customs of the middle class

and higher strata of the society, with the result that a woman from such social strata

now is more conscious of her appearance and is willing to spend extra cash on

enhancing the further. Numbers of women, especially from the middle-class

population, have more disposable income leading to a change in change cosmetic and

skin care products consumption (Bhattacharya, 2006).

23

According to the study conducted by DR. Vinith Kumar Nair and Dr. Prakash

Pillai R (2007) male consumers generally prefer to purchase and make the brand

selection of cosmetics individually. Quality is the major factor influencing the

purchase decision of male consumers. They tend to buy cosmetics items from a single

shop of their convinced. It is observed that male consumers buy all their cosmetics

items from the shop.

Herbs and plants extracts has been popular in many developed countries. The organic

constituents in the cosmetics categorically place them as green market. In response to

customers demand for products with natural origins and anti-ageing functions. The

product attractiveness cost of product acquisition, communication and point of sales

of promotions offered to the cosmetics customers (rajagopal, 2007).

Ruchi and Chaubey (2010) state that the mature expansion of satellite television and

consciousness of the western beauty and fashion world, communications and

promotion resulted a growing number of women in the work force, in particular, to

become more conscious about their skin and beauty products. In India, the upbringing

of rural and urban people along with economic and social developments have created

in increasing consciousness among people about their health and beauty, with

particular attention to care for their skin including getting protected from ultra violet

Rays. The use of skin care products of India by India consumers has been further

intensified by relatively larger disposal incomes, continuously changing life styles,

strong influence of satellite television and related media, and greater choice options

and availability of products.

In their study on women’s buying behavior of personal care products, Sundari and

Sathivel (2011) revealed that the factors influencing purchase decision of personal

care products are primary benefit and secondary benefit. The primary benefit includes

price, quantity and quantity. However, the secondary benefit includes ingredients of

the product, the purpose of the product, innovative features, manufactures reputation

and certification of the product.

Non-herbal cosmetics:

Krugman, H.E. (1966/1967). Was one of the first scholars to apply ego involvement

theory to a marketing context, examined a person’s involvement with advertising.

24

Since his work, several involvement conceptualizations have emerged. He described

involvement as a combination of needs, values, interest and situational variables.

Kapferer, J. and Laurent, G (1985/1986) in their study described involvement as

the state of motivation or arousal induced by factors such as interest, pleasure, sign

value and risk. In an extensive study, Kapferer and Laurent identified five antecedent

of involvement – interest, pleasure, sign, Risk importance and probability of error – to

create the consumers involvement profile (CIP). Interest refers to the interest and

importance in a product category, while pleasure is the enjoyment derived from the

product purchase. Sign value is the characters, personality and identity communicated

through the product class or brand. Risk importance is the importance placed on the

outcome of a miss purchase. It represents how consumer would feel if he/she

purchases the wrong product, for example, upset, irritated or annoyed. Probability of

error measures feelings of uncertainty, based on the likelihood of a miss purchase.

These five dimensions combine aspects of both EL and SI.

(Vigneron and Johnson (1999)) reported that the people’s needs for appearance and

materialism were increasing. That is human being wanted to satisfy the need to look

and feel good. This created a boom in the cosmetic across the world.

Cadogan and Foster (2000) argued that the price is probably the most important

consideration for the average consumer. Consumer with high brand loyalty is willing

to pay a premium price for their favored brand, so their purchase intention is not

easily affected by price. In addition, customers have a strong belief in the price and

value of their favorite brands, so much so that they would compare and evaluate

price with alternative brands.

Wysong, S. (2002) found that brand personality perceptions varied based on

consumer’s enduring involvement EI with beer product. Participants with high EI

(versus low EI participants) desired down-to-earth and honest beers, both sincerity

traits, as well as outdoorsy beers. Wysong et al believe that high EL consumers differ

from their low EI counter parts because they possess prior brand and product

knowledge that allows them to identify with the a brand’s personality.

Guthrie, M and JUNG J. (2008) in their study examine women’s perception of

brand personality with respect to women’s facial image and cosmetic usage; they had

25

found that the brand personality of competence was important across all the brands,

consumer perceptions pertaining to the brand personality traits differed. The survey

included items measuring facial image, cosmetic usage, brand personality, and brand

attitude. By examining how facial image and cosmetics usage both of them

determined that companies can improve their marketing strategies to enhance

customer satisfaction and increase their customer base. Moreover, by identifying the

brand personalities that attract consumers, companies can pin-point the characteristics

that customers look for in a product, which in turn can be used to enhance brand

image.

Hartmann, P. & Diehl, S. (2010), suggested that the exposure to pictures of good-

looking and even slightly above-average-looking females lowers the self –image of

exposed women and increases dissatisfaction with their own appearance. They

analyzed the effect of perceived instrumental/utilitarian and hedonic/emotional brand

benefits on women’s satisfaction with cosmetics brands, focusing on their relief from

dissatisfaction with one’s self –image as one of four identified emotional brand

experiences. The collected data was modeled using both structural equation analyses.

Results indicated that utilitarian and hedonic brand benefits had both contributed to

the satisfaction with the cosmetic brand-with an overall stronger influence of

emotional consumption experiences.

HILL. A. (2011), has given few tips, considering the important role that packaging

plays in displaying a brand. Hill believes that it is typically the first thing a consumer

interacts with in a brand experience. Hill said even for this reason, small companies

will often invest heavily in their product packaging when compared to other parts of a

brand campaign. She wrote in her work that strongest packages are authentic

expressions of the brand personality and speak clearly to the audience or consumers.

This is the key to the target customers by picking up a package and feeling as if it is

speaking directly to them.

26

Chapter 3

RESEARCH METHODOLOGY

AND OBJECTIVES

27

RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in the

investigation of matter. The primary purpose for applied research is discovering,

interpreting, and the development of methods and systems for the advancement of

human knowledge on a wide variety of scientific matters of our world and the

universe. Research can use the scientific method, but need not do so.

Scientific research relies on the application of the scientific method, a harnessing of

curiosity. This research provides scientific information and theories for the

explanation of the nature and the properties of the world around us. It makes practical

applications possible. Scientific research is funded by public authorities, by charitable

organizations and by private groups, including many companies. Scientific research

can be subdivided into different classifications according to their academic and

application disciplines.

Research methodology is a way to systematically solve the research problem. The

research methodology in the present study deals with research design, data collection

methods, sampling methods, survey, analysis and interpretations.

APPROACHES TO RESEARCH

Descriptive approach is one of the most popular approaches these days. In this

approach, a problem is described by the researcher by using questionnaire or

schedule. This approach enables a researcher to explore new areas of investigation.

RESEARCH OBJECTIVES

The objectives of the study are:

1. To know about the satisfactory level of herbal and non-herbal users using

various variables such as promotion, price etc.

2. To explore the demographic factors of the cosmetics consumers.

3. To study the impact of factors influencing the consumers to use the herbal and

non-herbal cosmetics products.

28

RESEARCH DESIGN

 A research design is the arrangement of conditions for collection and analysis of data

in a manner that aims to combine relevance to the research purpose with economy in

procedure.

DATA SOURCES

There are two types of data collection namely primary data collection and secondary

data collection.

PRIMARY DATA

The primary data is defined as the data, which is collected for the first time and fresh

in nature, and happen to be original in character through field survey.

Primary data collection, you collect the data yourself using methods such as

interviews and questionnaires. The key point here is that the data you collect is unique

to you and your research and, until you publish, no one else has access to it. There are

many methods of collecting primary data and the main methods include:

Questionnaires

A questionnaire is a research instrument consisting of a series of questions and other

prompt for the purpose of gathering information from respondents. Although they are

often designed for statistical analysis of the responses, this is not always the case.

SECONDARY DATA

The secondary data are those which have already been collected by someone else and

have been passed through statistical process. The secondary data for this study are

already available in the firm's internal records, annual report, broaches, and

company's website.

In research, Secondary data is collecting and possibly processing data by people other

than the researcher in question. Common sources of secondary data for social science

include censuses, large surveys, and organizational records (Mintel). In sociology

29

primary data is data you have collected yourself and secondary data is data you have

gathered from primary sources to create new research. In terms of historical research,

these two terms have different meanings. A primary source is a book or set of archival

records. A secondary source is a summary of a book or set of records. Advantages to

the secondary data collection method are - 1) it saves time that would otherwise be

spent collecting data, 2) provides a larger database (usually) than what would be

possible to collect on one’s own However there are disadvantages to the fact that the

researcher cannot personally check the data so it's reliability may be questioned.

SAMPLING-MEANING

Sampling is that part of statistical practice concerned with the selection of individual

observations intended to yield some knowledge about a population of concern,

especially for the purposes of statistical inference. Each observation measures one or

more properties (weight, location, etc.) of an observable entity enumerated to

distinguish objects or individuals. Survey weights often need to be applied to the data

to adjust for the sample design. Results from probability theory and statistical theory

are employed to guide practice.

The sampling process comprises several stages:

Defining the population of concern

Specifying a sampling frame, a set of items or events possible to measure

Specifying a sampling method for selecting items or events from the frame

Determining the sample size

Implementing the sampling plan

Sampling and data collecting

Reviewing the sampling process

SAMPLE SIZE

The sample size chosen for this study would be100.

a) Sample of the herbal cosmetics =50

30

b) Sample of the non-herbal cosmetics= 50

TYPE OF SAMPLING

The sampling type is non-probability which involves deliberating selections of

particular units constituting a sample, which represents the universe.

Convenience sampling:

Convenience sampling is a type of non-probability sampling that involves the sample

being drawn from that part of the population that is close to hand. That is, sample

population selected because it is readily available and convenient, as researcher are

drawing on relationship or networks to which they have easy access. The researcher

using such a sample cannot scientifically make generalization about the total

population from this sample because it would not be representative enough.

STATISTICAL METHODS USED

Percentage analysis

Bars & charts

Pie diagrams

STATISTICAL TOOLS USED

Chi-square test

Weighted average

PERCENTAGE ANALYSIS:

Percentage refers to a special kind of ratio. Percentages are used in making

comparison between two or more series of data. Percentage is used to describe

relative terms the distribution of two or more series of data.

No. of Respondents

Percentage of Respondents = ------------------------ X 100

Total Respondents

PIE DIAGRAMS:

31

A pie chart/diagram displays data, information, and statistics in an easy-to-read ‘pie-

slice’ format with varying slice sizes telling you how much of one data elements exist.

The bigger the slice, the more of that particular data was gathered.

.

32

Chapter 4

Data Analysis

&

Interpretation

33

Data analysis and Interpretation

The data analysis of herbal and non-herbal is divided into two parts:

a) Herbal products analysis

b) Non-herbal products analysis

4.1) Data analysis for herbal products

Gender wise classification.

Table 1 Gender wise classification

Frequency Percent Valid PercentCumulative Percent

Valid Male 20 40.0 40.0 40.0

Female 30 60.0 60.0 100.0

Total 50 100.0 100.0

Figure 1 gender wise classification

Interpretation

From the above diagram, we noticed that 60% female use herbal cosmetics

than 40% of the male.

34

Marital Status wise classification

Table 2 Marital status wise classification

Frequency Percent Valid PercentCumulative Percent

Valid Unmarried 25 50.0 50.0 50.0

Married 25 50.0 50.0 100.0

Total 50 100.0 100.0

Figure 2 status wise classifications

Interpretation:

From the above diagram, both 50% of consumers are married and unmarried

and both of them use herbal cosmetics.

35

Income statement wise classification

Table 3 Income statement wise classification

Frequency Percent Valid PercentCumulative Percent

Valid less than 25,000 5 10.0 10.0 10.0

25001—50000 21 42.0 42.0 52.0

50000-1,00,000 19 38.0 38.0 90.0

more than 1,00,001 5 10.0 10.0 100.0

Total 50 100.0 100.0

Figure 3 income wise classifications

Interpretation:

From the above diagram, we noticed that 10% of the consumer has their

income less than 25,000 and 42% of the consumer has their income between

25,001 to 50,000 and 38% of the consumers has their income between 50,001

and 1,00,000 and 10% of the consumers has their income above 1,00,001.

36

Occupation wise classification

Table 4 Occupation wise classification

Frequency PercentValid Percent

Cumulative Percent

Valid Student 9 18.0 18.0 18.0house wife 20 40.0 40.0 58.0Service 11 22.0 22.0 80.0own business 5 10.0 10.0 90.0Others 5 10.0 10.0 100.0Total 50 100.0 100.0

FIGURE 4 occupation wise classifications

Interpretation:

From the above diagram, we noticed that 18% of the consumer are the

students who buys herbal product, 40% of the consumer are the housewives,

22% of the consumers are into services, 10% of the consumers has their own

business and 10% of the consumers are into others occupation.

37

Age wise classification

FIGURE 5 age wise classification

Interpretation:

From the above diagram, we noticed that 20% of the consumers are lies in 18

to 25 of their age, 34% of the consumers are lies in 26 to 35 of their age, 30%

of the consumers are lies in 36 to 50 and 16% of the consumers are lie above

50 of their age.

38

Table 5 Age wise classification

Frequency PercentValid Percent

Cumulative Percent

Valid 18-25 10 20.0 20.0 20.026-35 17 34.0 34.0 54.036-50 15 30.0 30.0 84.050 onwards 8 16.0 16.0 100.0Total 50 100.0 100.0

Educational qualification wise classification

Table 6 Educational qualification wise classification

Frequency Percent Valid PercentCumulative Percent

Valid under graduated 8 16.0 16.0 16.0

Graduated 12 24.0 24.0 40.0

post graduated 14 28.0 28.0 68.0

Professional 6 12.0 12.0 80.0

Others 10 20.0 20.0 100.0

Total 50 100.0 100.0

FIGURE6 educational wise classification

Interpretation:

From the above diagram, we noticed that 16% of the consumers are under

graduate, 24% of the consumers are graduated, 28% of the consumers are post

graduated and 12% of the consumers are into professionals and 20% of the

consumers are into others.

Usage of herbal products

39

Table 7 Usage of herbal products

Frequency Percent Valid PercentCumulative Percent

Valid 1-2 years 11 22.0 22.0 22.0

2-3 years 17 34.0 34.0 56.0

3-4 years 15 30.0 30.0 86.0

5 years or above 7 14.0 14.0 100.0

Total 50 100.0 100.0

FIGURE 7 herbal product usages

Interpretation:

From the above diagram, we noticed that 22% of the consumers are using

herbal cosmetics from 1 to 2 years, 34% of the consumers are using from 2 to

3 years, 30% of the consumers are using from 3-4 years and 14% of the

consumers are using above 5 years.

40

The reason for usage of a particular product or brand

Table 8 Usage of particular product or brand

Frequency Percent Valid PercentCumulative Percent

Valid Quality 9 18.0 18.0 18.0

Price 16 32.0 32.0 50.0

Availability 13 26.0 26.0 76.0

Promotion 7 14.0 14.0 90.0

other reason 5 10.0 10.0 100.0

Total 50 100.0 100.0

FIGURE 8 the reason for usage of a particular product or brand

Interpretation:

From the above diagram, we noticed that 18% of the consumers buy herbal

product because of the quality, 32% of the consumers buy product because of

the price, 26% of the consumers buy product because of availability, 14% of

the consumers buy product because of promotion and 10% of the consumers

buy product due to other reasons.

Purpose do you use herbal cosmetics products?

41

Table 9 Purpose of herbal cosmetics

Frequency Percent Valid PercentCumulative Percent

Valid for sun protection 8 16.0 16.0 16.0

for medical use 12 24.0 24.0 40.0

for looking attractive 8 16.0 16.0 56.0

for ageing 5 10.0 10.0 66.0

for skin whitening 6 12.0 12.0 78.0

for other reason 11 22.0 22.0 100.0

Total 50 100.0 100.0

FIGURE 9 PURPOSE OF HERBAL COSMETICS USAGE

INTERPRETATION:

From the above diagram, we noticed that 16% of the consumers are using herbal products

because of sun protection, 24% of the consumers are using herbal products because for

medical issue, 16% of the consumers are using products because for looking attractive,

10% of the consumers are using products because of ageing purpose, 12% of the

consumers are using products because of skin whitening and 22% of the consumers are

using products due to other reason

42

How do you rate the product efficiency?

Table 10 RATE THE PRODUCT EFFICIENCY

Frequency Percent Valid PercentCumulative Percent

Valid Best 8 16.0 16.0 16.0

Good 18 36.0 36..0 52.0

Average 20 40.0 40.0 92.0

below average 4 8.0 8.0 100.0

Total 50 100.0 100.0

FIGURE 10 product efficiency

Interpretation:

From the above diagram, we noticed that 16% of the consumers are rated “best” in

product efficiency, 36% of the consumers are rated “good” in product efficiency, 40%

of the consumers are rated “average” in product efficiency and 8% of the consumers

are rated “below average in product efficiency.

Kindly indicate the degree to which you are satisfied on the following

variables?

43

TABLE 11 SATISFACTION LEVEL

kindly indicate the degree to which you are satisfied on the following variable

Total

HIGHLY SATISFIED

SATISFIED

NIETHER SATISFIED NOR DISSATISFIED

DISSATISFIED

HIGHLY DISSATISFIED

kindly inicate the degree to which you are satisfied on the following variables

PRICE 2 1 0 2 0 5PROMOTION 2 6 1 1 2 12

AVAILABILITY

4 1 2 3 2 12

QUALITY 2 1 2 0 0 5

PACKAGING 2 4 1 1 1 9

STORE LOCATION

2 3 2 0 0 7

Total 14 16 8 7 5 50

Interpretation:

Out of 5 respondents, 2 respondents are highly and dissatisfied and 1 is satisfied with

the price attribute of the product. Out of 12 respondents, 6 respondents are satisfied, 2

respondents are highly satisfied, 2 respondents are highly dissatisfied and 1 is neither

satisfied nor dissatisfied and dissatisfied with the promotion of the product. Out of 12

respondents, 4 are highly satisfied, one is satisfied, 2 are neither satisfied nor

dissatisfied and three are highly dissatisfied with the availability of the product. Out

of 5 respondents, two respondents are highly satisfied, one respondent are satisfied

and two respondents are neither satisfied nor dissatisfied with the quality of the

product. Out of 9 respondents, 2 respondents are highly satisfied, four respondents are

satisfied and one each respondents are agree with neither satisfaction nor dissatisfied

or dissatisfied or highly dissatisfied with the quality of the product. Out of 7

respondents , two respondents are highly satisfied, three respondents are satisfied and

two are just neither satisfied nor dissatisfied with the store location of the product.

Which product do you frequently use in herbal product?

44

Table 12 Frequently use of herbal product

Frequency PercentValid Percent

Cumulative Percent

Valid cosmetics used for skin care

10 20.0 20.0 20.0

cosmetics used for hair care

19 38.0 38.0 58.0

cosmetics used for color

16 32.0 32.0 90.0

cosmetics used for fragrances

5 10.0 10.0 100.0

Total 50 100.0 100.0

Figure 11 frequently use of cosmetics

Interpretation

From the above diagram, we noticed that 10% of the consumers used cosmetics for

their skin care, 38% of the consumers used cosmetics for their hair care, 32% of the

consumers used cosmetics for their color and 10% of the consumers used cosmetics

for their fragrances.

45

Show the satisfaction level of the herbal products

Table 13 satisfaction level of the herbal products

which product do you frequently use

TotalHighly satisfied

Satisfied

Neither satisfied nor dissatisfied

Dissatisfied

Highly dissatisfied

which frequently do you use f

cosmetics used for skin care

3 3 1 0 3 10

cosmetics used for hair care

3 5 8 3 0 19

cosmetics used for color

4 5 4 2 1 16

cosmetics used for fragrances

0 3 2 0 0 5

Total 10 16 15 5 4 50

Interpretation:Out of 10 respondents, 3 respondents are highly satisfied, 3 respondents are satisfied, 1

respondent is neither satisfied nor dissatisfied and 3 respondents are highly dissatisfied with

the cosmetics used for skin care. Out of 19 respondents, 3 respondents are highly satisfied, 5

respondents are satisfied, 8 respondents are neither satisfied nor dissatisfied and 3 respondents

are dissatisfied with the cosmetics used for hair care. Out of 16 respondents, 4 respondents are

highly satisfied, 5 respondents are satisfied, 4 respondents are neither satisfied nor

dissatisfied, 2 respondents are dissatisfied and 1 respondent is highly dissatisfied with the

cosmetics used for color. Out of 5 respondents, 3 respondents are satisfied and 2 respondents

are neither satisfied with cosmetics used for fragrances.

46

Analysis for non-herbal cosmeticsGender wise classification:

Table 14 Gender wise classification

Frequency PercentValid Percent

Cumulative Percent

Valid Male 26 52.0 52.0 52.0Female 24 48.0 48.0 100.0Total 50 100.0 100.0

Figure 12 gender wise classification

Interpretation:From the above diagram, we noticed that 52% of the consumers are male user who

uses non-herbal products where as 48% of the consumers are female user.

Marital Status wise classification:

47

Table 15 Marital status wise classification

Frequency Percent Valid PercentCumulative Percent

Valid Married 31 62.0 62.0 62.0

Unmarried 19 38.0 38.0 100.0

Total 50 100.0 100.0

Figure 13 status wise classifications

Interpretation:

From the above diagram, we noticed that 62% of the consumers are married and 38%

of the consumers are unmarried.

Income statement wise classification

48

Table 16 Income statement wise classification

Frequency Percent Valid PercentCumulative Percent

Valid less than 25,000 7 14.0 14.0 14.0

25,001-50,000 14 28.0 28.0 42.0

50,001-1,00,000 23 46.0 46.0 88.0

more than 1,00,000 6 12.0 12.0 100.0

Total 50 100.0 100.0

Figure 14 income statement wise classifications

Interpretation:

From the above diagram, we noticed that 14% of the consumer has their

income less than 25,000 and 28% of the consumer has their income between

25,001 and 50,000 and 46% of the consumers has their income between

50,001 and 1,00,000 and 12% of the consumers has their income above

1,00,001.

Occupation wise Classification:

49

Table 17 Occupation wise classification

Frequency Percent Valid PercentCumulative Percent

Valid Student 7 14.0 14.0 14.0

house wife 10 20.0 20.0 34.0

Service 15 30.0 30.0 64.0

own business 7 14.0 14.0 78.0

Others 11 22.0 22.0 100.0

Total 50 100.0 100.0

Figure 15 occupation wise classifications

Interpretation:

From the above diagram, we noticed that 14% of the consumer are the students who

buys non-herbal product, 20% of the consumer are the housewives, 30% of the

consumers are into services, 14% of the consumers has their own business and 22%

of the consumers are into others occupation.

50

Age wise classification:

Table 18 Age wise classification

Frequency Percent Valid PercentCumulative Percent

Valid 18-25 10 20.0 20.0 20.0

26-35 13 26.0 26.0 46.0

36-50 17 34.0 34.0 80.0

50 onwards 10 20.0 20.0 100.0

Total 50 100.0 100.0

Figure 16 age wise classification

Interpretation:

From the above diagram, we noticed that 20% of the consumers are lies in 18 to 25

of their age, 26% of the consumers are lies in 26 to 35 of their age, 34% of the

consumers are lies in 36 to 50 and 20% of the consumers are lie above 50 of their

age.

Educational qualification wise classification

51

Table 19 Educational qualification wise classification

Frequency Percent Valid PercentCumulative Percent

Valid under graduated 10 20.0 20.0 20.0

Graduated 11 22.0 22.0 42.0

post graduated 15 30.0 30.0 72.0

Professional 6 12.0 12.0 84.0

Others 8 16.0 16.0 100.0

Total 50 100.0 100.0

Figure 17 educational wise classifications

Interpretation:

From the above diagram, we noticed that 16% of the consumers are under

graduate, 24% of the consumers are graduated, 28% of the consumers are post

graduated and 12% of the consumers are into professionals and 20% of the

consumers are into others.

52

How long you are using non-herbal products?

Table 20 usage non-herbal products

Frequency Percent Valid PercentCumulative Percent

Valid 1-2 years 14 28.0 28.0 28.0

2-3 years 15 30.0 30.0 58.0

3-4 years 17 34.0 34.0 92.0

5 years 4 8.0 8.0 100.0

Total 50 100.0 100.0

Figure 18 usages of non-herbal products

Interpretation:

From above diagram, we noticed that 28% if the consumers are using non-herbal

products from past 1 to 2 years, 30% of the consumers are using from 2 to 3 years,

34% of the consumers are using from 3-4 years and 8% of the consumers are using

above 5 years.

Kindly specify the reason for usage of a particular brand or product

53

Table 21 Specify the reason of the particular product or brand

Frequency Percent Valid PercentCumulative Percent

Valid Quality 15 30.0 30.0 30.0

Price 18 36.0 36.0 66.0

Availability 10 20.0 20.0 86.0

Promotion 4 8.0 8.0 94.0

OTHER REASONS 3 6.0 6.0 100.0

Total 50 100.0 100.0

Figure 19 the reason of the particular product or brand

Interpretation:

From the above diagram, we noticed that 18% of the consumers buy herbal product

because of the quality, 32% of the consumers buy product because of the price, 26%

of the consumers buy product because of availability, 14% of the consumers buy

product because of promotion and 10% of the consumers buy product due to other

reasons.

For what reason do you use non-herbal product cosmetics?

54

Table 22 Reason for using non-herbal products

Frequency Percent Valid PercentCumulative Percent

Valid for sun protection 7 14.0 14.0 14.0

for medical use 17 34.0 34.0 48.0

for looking attractive

18 36.0 36.0 84.0

for ageing 4 8.0 8.0 92.0

skin whitening 3 6.0 6.0 98.0

Others 1 2.0 2.0 100.0

Total 50 100.0 100.0

Figure 20 reasons for using non-herbal cosmetics

Interpretation:

From the above diagram, we noticed that 14% of the consumers are using non-

herbal products because of sun protection, 34% of the consumers are using

non-herbal products because for medical issue, 36% of the consumers are

using products because for looking attractive, 8% of the consumers are using

products because of ageing purpose, 2% of the consumers are using products

because of skin whitening and 2% of the consumers are using products due to

other reason.

How do you rate the product efficiency?

55

Table 23 How do you rate the product efficiency

Frequency Percent Valid PercentCumulative Percent

Valid Best 10 20.0 20.0 20.0

Good 17 34.0 34.0 54.0

Average 16 32.0 32.0 86.0

below average 7 14.0 14.0 100.0

Total 50 100.0 100.0

Figure 21 product efficiency

Interpretation:

From the above diagram, we noticed that 20% of the consumers are rated “best” in

product efficiency, 34% of the consumers are rated “good” in product efficiency, 32%

of the consumers are rated “average” in product efficiency and 14% of the consumers

are rated “below average in product efficiency.

Indicate the degree to which you are satisfied on the following variables

Table 24 Indicate the degree to which you are satisfied on the following

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variables

kindly indicate the degree to which you are satisfied on the following variables

Total

highly satisfied

satisfied

neither satisfied nor dissatisfied

Dissatisfied

highly dissatisfied

kindly indicate the degree to which u are satisfied on the following variable

Price 3 3 1 0 0 7Promotion 0 3 6 1 2 12Availability

1 2 2 2 2 9

Quality 2 2 2 1 1 8Packaging 2 2 0 1 1 6store location

0 2 2 1 0 5

Brand 0 1 1 0 1 3

Total 8 15 14 6 7 50

Interpretation:

Out of 7, 3 are highly satisfied, 3 are satisfied and 1 are neither satisfied nor

dissatisfied with the price of non-herbal cosmetics products, out of 12, 3 are satisfied,

6 are neither satisfied nor dissatisfied, 1 are dissatisfied and 2 are highly dissatisfied

with the promotion of non-herbal products, out of 9, 1 are highly satisfied, 2 are

satisfied, 2 are neither satisfied nor dissatisfied, 2 are dissatisfied and 2 are highly

dissatisfied with the availability of the non-herbal product, out of 8, 2 are highly

satisfied, 2 are satisfied, 2 are neither satisfied nor dissatisfied, 1 are dissatisfied and 1

are highly dissatisfied with the quality of the products. Out of 6, 2 are highly satisfied,

2 are satisfied, 1 is dissatisfied and 1 is highly dissatisfied with the packaging of the

product. Out of 5, one is satisfied, 1 is neither satisfied nor dissatisfied and 1 is highly

dissatisfied with the store location of the product. Out of three, one is satisfied, one is

neither satisfied nor dissatisfied and one is highly dissatisfied with the brand of the

product.

57

Frequently use in non-herbal products

Table 25 Frequent use in non-herbal product

Frequency Percent Valid PercentCumulative Percent

Valid cosmetics used for skin care 11 22.0 22.0 22.0

cosmetics used for hair care 14 28.0 28.0 50.0

cosmetics used for color 15 30.0 30.0 80.0

cosmetics used for fragrances

10 20.0 20.0 100.0

Total 50 100.0 100.0

Figure 22 frequently use in non-herbal cosmetics products

Interpretation

From the above diagram, we noticed that 10% of the consumers used cosmetics for

their skin care, 38% of the consumers used cosmetics for their hair care, 32% of the

consumers used cosmetics for their color and 10% of the consumers used cosmetics

for their fragrances.

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Show the level of satisfaction according to the use of products.

Table 26 The level of satisfaction according to the use of products

which product do you use frequently

Totalhighly satisfied

Satisfied

neither satisfied nor dissatisfied

Dissatisfied

highly dissatisfied

which product do you use frequently

cosmetics used for skin care

4 2 3 2 0 11

cosmetics used for hair care

1 8 3 2 0 14

cosmetics used for color

1 2 8 4 0 15

cosmetics used for fragrance

4 3 2 0 1 10

Total 10 15 16 8 1 50

InterpretationOut of 11, 4 are highly satisfied, 2 are satisfied, 3 are neither satisfied nor dissatisfied and 2 are

dissatisfied with cosmetics used for skin care. Out of 14, 1 are highly satisfied, 8 are satisfied,

3 are neither satisfied nor dissatisfied and 2 are dissatisfied with the cosmetics used for hair

care. Out of 15, one is highly satisfied, two are satisfied, 8 are neither satisfied nor dissatisfied

and 4 are dissatisfied with the cosmetics used for color. Out of 10, 4 are highly satisfied, 3 are

satisfied, 2 are neither satisfied nor dissatisfied and one is highly satisfied with the cosmetics

used for fragrances.

Comparison between herbal and non-herbal cosmetics

Table no 27

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Purpose Herbal cosmetics Non-Herbal Cosmetics

Gender Out of sample size, female are the major priority that use herbal cosmetics.

Out of sample size, female are in less majority that use non-herbal cosmetics.

Marital status Both married and unmarried consumers uses herbal products

62% of the consumers are married and 38% of the consumers are unmarried.

Income level 42% of the consumers have their income in between 25,001 to 50,000.

28% of the consumers have their income in between 25,001 to 50,000

Occupation Most of the female consumers are house wives.

Most of the female consumers are in to services.

Educational qualification

Most of the female consumers completed their post graduation

Most of the female consumers completed their post graduation.

How long they are using products

In herbal products, they are using from 2 to 3 years

In non-herbal products, they are using from 3 to 4 years.

Usage of products

Most of the female consumers are using products due to price

Most of the female consumers are using products due to price

Purpose They are using because of medical issues

They are using because to look attractive

Product efficiency

They rated “average” in product efficiency

They rated “good” in product efficiency.

Chapter 5

60

FINDINGS, RECOMMENDATION AND CONCLUSION

61

Findings: Herbal cosmetics products

a. The majority (60%) of respondents are female which uses herbal cosmetics

products.

b. According to the marital status, the both married and unmarried consumers use

herbal cosmetics.(50%)

c. The majority (42%) of respondents of the income level lie in between 25,001

to 50,000 and second majority (38%) lie in between 50,001 to 1, 00,000.

d. The majority (40%) of the respondents are housewives while the second

majorities (22%) are in services sector.

e. The majority (34%) of respondents is in between 26 to 35 of their age and

second majority (30%) is in 36 to 50.

f. The majority (28%) of the respondents are completed their post graduation

and second majority (24%) are graduated.

g. The majority (34%) of the respondents is using herbal products from 2 to 3

years and second majorities (30%) are from 3 to 4 years.

h. The majority (32%) of the respondents are purchasing herbal products because

of price and second of the majority (26%) is due to availability.

i. The majority (24%) of the respondents is using herbal products because of

medical use and second majority (22%) is due to other reason.

j. The majority of the respondents are rated “average” (40%) in product

efficiency and second majority rated “good” (36%).

k. 16 consumers are just satisfied with the price, promotion, availability, quality,

packaging and store location of the product.

l. The majority (38%) of consumers used cosmetics for their hair care and

second majority (32%) of the consumers used cosmetics for their color.

m. 16 consumers are just satisfied with the cosmetics used for skin care, hair care,

color and fragrances.

62

Non Herbal cosmetics products:

a. The majority of respondents are male. (52%)

b. The majority of respondents are married. (62%)

c. The majority (46%) of respondents has their income in between 50,001 to 1,

00,000 and second majority is in between 25, 001 to 50,000.(28%)

d. The majority (30%) of respondents is into services and second majorities

(22%) are in to other occupations.

e. The majority (34%) of the respondents is in between 36 to 50 of their age and

second majority (26%) is in between 26 to 35.

f. The majority (28%) of the respondents is post graduated and second majority

(24%) is graduated.

g. The majority (34%) of the respondents is using non-herbal products from 3 to

4 years and second majority (30%) are from 2 to 3 years.

h. The majority (32%) of the respondents is purchasing products because of price

and second majority (26%) is due to availability.

i. The majority of the respondents are using non-herbal products because to look

attractive and second majority is due to medical issues.

j. The majority (36%) of the respondents is rated “good” in product efficiency

and second majority (34%) is rated “average” in product efficiency.

k. 15 consumers are just satisfied with the price, promotion, availability, quality,

packaging, store location and brand of the product.

l. The majority (38%) of consumers are used cosmetics used for their hair care

and the second majority (32%) of the consumers used for their color.

m. 16 consumers are neither satisfied nor dissatisfied with the non-herbal

cosmetics products used for skin care, hair care, color and fragrances.

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Conclusion

The study shows that customer satisfactory level towards herbal and non-herbal

cosmetics. We conclude that, herbal consumers are more satisfied with products as

compared to non-herbal cosmetics. From the sample of the respondents, we came

across that female are in majority of the respondents who used herbal cosmetics and

they are satisfied with the products used by them.

In herbal products, the consumers spend more on herbal cosmetics as compared to

non-herbal cosmetics. Where non-herbal consumers are using products from 3 to 4

years but in herbal cosmetics are fewer consumers who use cosmetics from 3 to 4

years. Normally, consumers use herbal products because of medical use but in non-

herbal products they use just to look attractive.

The majority of consumers are rated “good” in product efficiency in non-herbal

cosmetics but in herbal cosmetics, the consumers rated “average” in product

efficiency.

Therefore, we conclude that people are various satisfied with herbal cosmetics and

few consumers are satisfied with the non-herbal products.

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SUGGESTIONSFor herbal products:

In herbal cosmetics, the products should be aware on lower income segments.

Manufacturer should manufacture the product which includes lower income and

middle income segments. Marketer should aware the people who don’t purchase

because of quality. So, they should know the importance of quality in the product so

that the consumer should pay the money according to the product segment.

Companies should improve the product efficiency because the respondents who uses

herbal cosmetics product rated “average” product efficiency. We should promote

those product as well who is least purchase towards herbal product segment such as

fragrances etc.

For non-Herbal products:

In non-herbal products, the manufacturer should improve product efficiency in a

better way so they cannot make their mind to switch their segment into non-herbal

products. Companies should manufacture or introduce the product for the lower

segment as well. Company should take care towards quality of the product.

65

BIBLIOGRAPHY

http://www.van-haaften.nl/customer-satisfaction/customer-satisfaction-

models/113-customer-satisfaction (a study on consumer awareness, attitude and

preferences towards herbal cosmetics products with special references to

Coimbatore city)

http://www.slideshare.net/markangelo01/chapter-5-kotler-customer-value-

satisfaction-and-loyalty( concepts of customer satisfaction)

http://www.ijims.com/uploads/365ba7a88ce2a984969bkgoki12.pdf

http://www.researchersworld.com/ijms/vol2/issue1/Paper_07.pdf (the study of

usage of herbal cosmetics by selected subjects

https://en.wikipedia.org/wiki/Cosmetics (meaning of cosmetics)

http://chemistscorner.com/the-10-different-types-of-cosmetic-formulas-you-

must-know/ (concepts of cosmetics)

http://www.lakmeindia.com/ (concepts of lakme)

https://www.beautifulhamesha.com/ponds-white-beauty-daily-spot-less-

lightening-cream-review/ (concepts of ponds)

http://accman.in/images/feb13/Gupta%20V.pdf (a study on consumer

perception and brand personality traits of making cosmetics purchase

decision)

https://jcwalsh.files.wordpress.com/2013/07/study-of-women-cosmetics-

surat.pdf (study of women’s buying behavior as regards cosmetics in Surat

region, India)

http://ijar.org.in/stuff/issues/v3-i3%282%29/v3-i3%282%29-a005.pdf (the

customer satisfaction towards herbal skin care products)

66

Annexure

Questionnaire

1) Name: _____________________2) Phone number:3) Sex a) Female b) Male

4) Status: a) Married b) unmarried

5) Income statement:

a) Less than 25,000b) 25,001 - 50,000c) 50,001 - 1,00,000d) More than 1,00,001

6) Occupation:

a) Studentb) House wife c) service d) Own businesse) Others

7) Age group

a) 18-25b) 26-35c) 36- 50 d) 50 onwards

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8) Educational qualification a) Under graduate b) Graduated c) Post graduated d) professional e) Others

9) In cosmetics which ingredients do you prefer to use?

a) Herbal b) non-herbal

10) How long you are using non-herbal products?

a) 1-2years b) 2-3years

c) 3-4years d) 5 years

11) Kindly specify the reason for usage of a particular product/brand

a) Quality b) price

c) Availability d) promotion

e) Other reasons

12) For What purpose do you use herbal cosmetics or non herbal cosmetics?

a) For sun protection b) for medical use

c) For looking attractive d) for ageing purpose

e) Skin whitening f) others---- please specify

13) How do you rate the product efficiency?

a) Best b) good

c) Average d) below average

68

14) Kindly indicate the degree to which you are satisfied on the following variables:

FACTORS Highly satisfied

satisfied Neither satisfied nor satisfied

Dissatisfied Highly dissatisfied

I. PRICE 1 2 3 4 5

II. PROMOTION 1 2 3 4 5

III. AVAILABILITY 1 2 3 4 5

IV. QUALITY 1 2 3 4 5

V. PACKAGING 1 2 3 4 5

VI. STORE LOCATION 1 2 3 4 5

VII. BRAND 1 2 3 4 5

15) Which product do you frequently use in herbal or non-herbal product?

a) Cosmetics used for skin care

b) Cosmetics used for hair care

c) Cosmetics used for color

d) Cosmetics used for fragrances

16) Show the level of satisfaction as well.

Products Highly satisfied

Partially satisfied

Neither satisfied nor dissatisfied

Partial dissatisfied

Fully dissatisfied

Cosmetics used for skin care

1 2 3 4 5

Cosmetics used for hair care

1 2 3 4 5

Cosmetics used for color

`1 2 3 4 5

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Cosmetics used for fragrances

1 2 3 4 5

70